Turning the MOT into a Retention Opportunity

From March 20^th, a series of new MOT requirements was introduced. The new, more stringent test, has increased the number of checks made. Inevitably this does increase the likelihood of a failure. It is a change that has implications for both independent and franchised dealers, especially since consumers are now keeping their cars for longer. AutoProtect’s updated MOT insurance and guarantee options have been developed to create a new opportunity to help customers who may be concerned about the increased risk of a future MOT failure.

1. Dealers can offer an MOT guarantee as part of their sales proposition, backed by AutoProtect
2. Customers can be offered the opportunity to buy MOT insurance

The former enables the customer to return to the dealer that served the V30 failure notice to rectify any MOT failure items. Parts and labour up to £1,000 are covered (plus excess). The latter enables the customer to purchase insurance cover that provides £1,000 worth of MOT failure protection that can be used at a VOSA approved garage to achieve a full MOT pass. Naturally, the two products are subject to clearly defined terms and conditions.  

For franchised dealers, the new introduction of the new MOT is coupled with news that customers are now keeping their cars for an average of 3.6 years, up from 2.9 years a few years ago. The change is credited to increased reliability, longer warranties and reduced levels of annual mileage, as well as economic pressures. It is an increase that will ensure many more car owners will need to take their car for the new more strenuous MOT.

Once a car approaches its first MOT, research consistently demonstrates that owners move from the franchised aftersales experience to an independent or fast fit alternative. This situation is all too clear from the falling absorption levels reported over recent years. The MOT is the only aftersales opportunity required by law and dealers should view the MOT as a pivotal moment. Valuable aftersales work can be lost and the opportunity to stay close to the customer at the very time when they are most likely to be ‘in market’ for a car change could also be lost.

The enhanced guarantee and insurance MOT protection options can help ensure the dealer is able to stay close to their customer as their MOT approaches.

Even dealers who do not have MOT facilities can offer the insurance product and outsource the testing to a local VOSA approved MOT station. It is an ideal way of helping and thereby retaining more customers.

“Our guarantee and insurance options are designed to make car buying and ownership easier for customers. They make it easier for customers to buy their chosen car and enhance confidence in the supplying dealer.

“Providing a way to support the customer through the MOT process is a way of demonstrating long-term commitment to helping the customer in their future motoring. In this respect, the guarantee option is an ideal tool, available to all dealers that can help differentiate a dealer’s proposition and add real value. The insurance option is perfect to help retain a customer’s long-term loyalty. In both cases, the products provide dealers with an edge in building consumer confidence” Noted Michael McVeigh, Operations Director at AutoProtect.

MOT Test Insurance covers the costs of repairs or replacement of parts, including the labour and VAT up to £1,000 plus excess payments.